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    Enbridge boosted in Q3 on US distributor acquisitions

Summary

Three US utilities added more than C$200mn to Q3 EBITDA. [Image: Wikimedia Commons]

by: Dale Lunan

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Enbridge boosted in Q3 on US distributor acquisitions

Canadian energy infrastructure company Enbridge said November 1 it had adjusted EBITDA of C$4.2bn (US$3bn) in Q3 2024, up from C$3.87bn in the comparable 2023 period, which CEO Greg Ebel attributed in part to the acquisition of three US gas distribution firms since March 2024.

“In Gas Distribution, we now operate the largest natural gas utility in North America delivering approximately 9.3bn ft3/day of natural gas per day to over 7mn customers,” Ebel said. “The acquired US utilities have a rate base compound annual growth rate of approximately 8% through 2027 and are located in supportive regulatory jurisdictions.”

In September 2023, Enbridge entered into agreements to acquire three natural gas utilities from Dominion Energy for cash and debt totalling US$14bn.

The first transaction to close was for The East Ohio Gas Company (EOG) in March 2024, adding more than 1.2mn customers in 400 communities in Ohio. On June 3, Enbridge closed the acquisition of Questar Gas Company and its related Wexpro companies, adding 1.2mn customers, and on September 30, the US$3.2bn acquisition of Public Service Company of North Carolina was closed, adding 600,000 customers.

EBITDA gains were also attributed to higher revenue on Enbridge’s Mainline system from higher tolls, increased contributions from natural gas storage assets on the US Gulf Coast and other acquisitions.

During the quarter, Enbridge’s Gas Distribution and Storage business contributed adjusted EBITDA of C$522mn, up from C$271mn in Q3 2023, largely driven by a C$217mn contribution from the US gas utilities.

Its Gas Transmission business contributed adjusted EBITDA of C$1.15bn in Q3 2024, up from C$1.1bn a year ago, while Liquids Pipelines, which includes the Mainline system from Alberta to the US Midwest and Eastern Canada, contributed adjusted EBITDA of C$2.34bn, up slightly from C$2.99bn in Q3 2023.